Sector-wise, buying was seen in telecom, capital goods, consumer durables, and power stocks while selling was visible in metals and banks.
Stocks that were in focus on Tuesday include Mazagon Dock Shipbuilders (which was up 10%), Bharat Dynamics (which saw a spike of nearly 14%) and Polycab India (which closed with gains of over 6%).
We have collated a list of three stocks that either hit a fresh 52-week high or saw a volume or a price breakout.
We spoke to analyst Sunil Gurjar about how one should look at these stocks the next trading day entirely from an educational point of view:
Here’s what the Founder of Chartmojo has to say:
Mazagon Dock
Mazagon Dock has been a very strong performer since July 2022. We can notice that the stock has made trend continuation patterns in bullish basing continuation forms on the weekly time frame.
The volume participation also looks very strong, which indicates strong buying interest from big players in the market.
The counter is also trading above the long-term moving average (40-WEMA). One can look for a long opportunity at the current levels and the breakout candle’s low will act as a strong invalidation level on the way down.
One should remember that the current breakout has occurred with a bullish candlestick pattern named as bullish Marubozu (it’s a Japanese term), which also indicates a potential upside in the days to come.
Bharat Dynamics
The counter has been going through a strong uptrend in the rising channel and giving us a positive indication. For the time being, the technical structure of the stock looks good. However, the risk-to-reward ratio does not look favourable to me due to which I will have a wait-and-watch approach on the counter.
ETMarkets.comPolycab
The stock is having strong momentum and it is trading above all key moving averages, filters out trend momentum.
One can also see that the counter is forming an uptrend continuation pattern, which is indicating a strong potential upside in the forthcoming trading sessions. The volume action is also looking very positive with a wide range bullish volume bar.
On the way up, the stock should breach today’s high of the breakout candle and on the way down today’s breakout candle’s low will act as a pattern invalidation zone, which is pegged at Rs 3,554.
ETMarkets.com(Analyst Disclaimer: I’m not a SEBI registered advisor, please consult your financial advisor before investing any money. All of the above observations are shared for educational purposes only. Views mentioned are of the Analyst.)
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)